BlackBerry expected to axe more executives

BlackBerry is preparing for an increase in executive departures as retention bonuses expire and Chief Executive Officer Thorsten Heins sets tougher targets that put managers' jobs on the line, according to a person familiar with the Canadian smartphone maker's plans.

One-year incentive packages offered starting last July to help get the company's new BlackBerry 10 phones and software built and delivered on time are expiring, said the person, who asked not to be identified because the matter is private. Heins is also establishing goals for phone sales, subscriber growth and product development, the person said. Managers failing to meet the figures will face termination, the person said.

The renewed pressure on jobs comes after BlackBerry fired 5,000 workers last year to squeeze out $1 billion in operating costs. Analysts had expected the cutbacks to help the company post a profit last quarter. Instead, BlackBerry lost $84 million, dragged down by sluggish sales of its new Z10 touch-screen phone. The company is projecting another loss for the current quarter.

Heins still views BlackBerry as too bloated in some areas, especially as its new operating system has now been built, so the company is also looking to shed staff through attrition, the person said.

The targets established by Heins also cover growth in applications for the new BlackBerry 10 platform and deadlines to deliver new devices to carriers for testing, and apply to managers, who represent about 10 percent of BlackBerry's employees, said the person familiar with the matter.

The company, based in Waterloo, now has about 12,700 employees. The person declined to say how many jobs might be affected by the actions.

Adam Emery, a spokesperson for BlackBerry, declined to comment on staffing decisions.

Sales of the Z10, introduced in January, missed analysts' estimates by nearly a million units, contributing to last quarter's loss. Best Buy Co. has cut the price of the Z10 to $49.99 from $199.99 with a two-year contract.

The current belt-tightening program, called Polaris, is about "really trimming and slimming the organization," Heins told reporters at the company's annual meeting on July 9.

BlackBerry said this week that its head of U.S. sales left the company last month. Richard Piasentin, who was based in Waterloo, wanted to stay in Canada, so BlackBerry is now looking to replace him with a U.S.-based sales chief, the person familiar with the matter said. His post is not being eliminated, the person said.

T.A. McCann and Marc Gingras, have also left the company, BlackBerry said this week, without saying when they departed.

Bloomberg

|

(4) Comment

By bob|JULY 14, 2013 12:11 PM

I believe, that this is one of the final stages of "restructuring" before they fade away, or are bought out......Their last ditch effort was a failure (both trying to fool people by the name change and of course the over-hyped release of the Z10)...They have nothing more up their sleeve...at this point it's all about a strategic exit...Thorsten's job is to save face and act, as if nothing is happening, as the ship going down....If I used the Titanic analogy, they are at the point, where the band on the deck realizes, that they are all going down but play music anyway, since there is nothing more that could be done...

I realize that thousands of people were let go in 2012, but I think they cleared out all they needed to, and so they won't have to do that again. Just like Thorsten said, it's still early days, it's only phase two, so I believe everyone's job there is completely safe, and everything at BlackBerry will be just fine. It's still early days, it's only phase two in the three phase plan.

Adam, I sure hope that your crystal ball is right. I still have lots of friends with jobs there. Enjoy the summer but start building up some savings just in case. Let me tell you how it went down in 2002. After a general meeting, we got to go back to our desks to wait to see if a Manager came to your desk. Then you get escorted to a meeting room where you were handed an envelope, and stripped of your door fob and Blackberry. You get ushered to the door, and that's the end of that chapter. Free agent.

Still early days, it's only phase two, everything will be fine. Don't worry about it BlackBerries, just take it easy and try to enjoy some of this beautiful weather we're having. Relax, your jobs are all safe.